Multi-Level Marketing and Internet Fraud

Along with the explosive growth of the Web has come explosive growth in Internet fraud and “get-rich-quick” schemes. Beware of such claims! Educate yourself about the differences between what constitutes a legitimate business opportunity and Pyramid Schemes, Ponzi Schemes, and Related Frauds.

Multi-Level Marketing
Multi-Level Marketing or Network Marketing has long been associated with fraudulent “get-rich-quick” schemes. Certainly any economic endeavor will attract those looking for the fast buck and those unscrupulous ones who are determined to separate your from your money. What’s new about that? You even find those folks on Wall Street and in Washington, D.C. The trick is to separate the frauds from the legitimate opportunities. And, there are legitimate opportunities!

A long standing principle in the Free Enterprise system is “buyer beware.” It is the buyers responsibility to educate themselves so they can make an informed buying decision.

Corporate Cover-Up
The truth is, ALL businesses are structured as a “pyramid.” You have the owners, CEO’s, and other executives at the top of the pyramid with the management people in the middle and the workers at the bottom.

The difference between this corporate pyramid structure and legitimate network marketing companies is that in the corporate environment, those at the top have a vested interest in protecting their elevated positions at the expense of those below them. In network marketing, ALL those in the business have an EQUAL opportunity to share in the overall success of the business. Indeed, it is not uncommon for someone to enter towards the bottom of the pyramid structure only to rise in a short time to a top level position in the company. You WILL NOT find that sort of opportunity in the corporate pyramid.

There has been a long standing conspiracy in our society perpetrated by corporations, labor unions, government officials, attorneys, educators, and others to protect the corporate pyramids and the wealth they assimilate. In fact, we are all involved in network marketing every day of our lives. We recommend movies, restaurants, books, music, stores, services, and the whole gamut of business. But, rarely are the ones who are making those recommendations rewarded for doing so. In multi-level marketing, all those along the chain who recommends products and services are rewarded for their efforts. In the corporate environment, or “single-level” marketing when you make a recommendation the company keeps the rewards for themselves.

The corporate pyramids indeed have an economic interest in maintaining their single-level marketing system and keeping the truth about multi-level marketing from the public.

In more recent years Network Marketing has been gaining in acceptance and popularity. It is proving itself to be an effective, professional, and rewarding business model. Witness the growth of “Affiliate Programs” on the Internet. Affiliate programs ARE multi-level marketing. Nearly all business that market on the Internet now have an affiliate program to reward others for recommending their services.

I’m sure you’ve heard of Amazon.com. That is network marketing. Amazon.com has not grown to be the company they are by adhering to old business practices. No! They offer their network of thousands of affiliates (network marketers) commissions for recommending books and other products.